Finsbury Food: FY 2020-2021 Preliminary Results

London / UK. (ffg) British Finsbury Food Group PLC, a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, is pleased to announce its preliminary results for the 52 weeks ended 26 June 2021.

Summary

The full year figures represent twelve month trading in the pandemic environment compared to three months in the previous year. It also embraces six months trading post Brexit. The year on year growth across all metrics reflects how resilient the Group is and how well it can adapt in an environment of uncertainty.

  • Group revenue up 2.3 percent to GBP 313.3m.
  • Group Ebitda*1 up 2.5 percent to GBP 26.9m.
  • Profit before tax up 493 percent to GBP 17.0m.
  • Adjusted Basic EPS*2 (pence per share) 9.1p (2020: 7.9p).
  • Strong cash generation driving down net bank debt down from GBP 26.5m to GBP 13.1m (excluding IFRS 16 debt), reducing leverage to 0.5 times annualised Ebitda of the Group (2020: 1.1 times).
  • The Group’s Operating Brilliance Programme continues to drive improvements in operational variances, with gross margin increasing 1.7 percent to 32.9 percent.

Strategic Highlights

  • Extremely positive second half performance with second half revenues up 9.1 percent against the corresponding period in the prior year.
  • Progressive improvement year on year with retail up +5.8 percent and foodservice down 14.9 percent as it recovers from Covid impact
    • The foodservice business continues to improve with second half revenues up 4.6 percent against the comparative period in the prior year.
  • Significant growth in overseas division up 13.4 percent against the prior year.
  • Investment in capital projects of GBP 6.2m, including:
    • A new frozen dough ball facility commissioned in Manchester; and
    • Additional 50 percent capacity in state of the art artisan bread production equipment.
  • Further innovation in line with consumer trends with;
    • Award-winning Free From and vegan cakes; and
    • Launch of vegan doughnuts and a range of artisan gluten-free breads.
  • Continued double-digit growth in artisan sourdough breads.
  • Product excellence illustrated by the winning of several Quality Food and Drink ‘Q’ Awards.
  • Continued investment in development, engagement and health and well-being of employees.

[*1] Profit is before significant non-recurring and other items.
[*2] Adjusted EPS has been calculated using earnings excluding the impact of amortisation of intangibles and significant non-recurring and other items as shown on the face of the Statement of Comprehensive Income.

Chief Executive John Duffy said: «It was incredibly pleasing to deliver such a robust financial performance with year-on-year revenue growth and a total sales figure almost at pre-pandemic levels, despite having to navigate such challenging circumstances over the period. We have continued to introduce new initiatives, in line with our Operating Brilliance Programme, to enable the Group to operate as a single, efficient organisation capable of scale execution.

«I would like to thank all our people across the Group for their continued hard work, determination and commitment through what has been a testing time for many of them and their families. Without the determination of our committed workforce, we wouldn’t have been able to play a part in keeping food shelves stocked in the territories we serve and the whole team should be extremely proud of their contributions.

«Whilst we are likely to face persistent challenges around inflation and skilled labour and driver shortages, our long-term growth ambitions remain unchanged. We are committed to making Finsbury an even more efficient and joined-up business, focused on driving synergies and scale benefits across the Group.»